The Digger Articles

Blackstone Minerals is progressing the development of the company’s world-class Little Gem cobalt-gold project in the Canadian province of British Columbia. To say Blackstone Minerals has been busy throughout the month of October would be an understatement as a steady flow of news from the Little Gem project continued to keep market watchers interested as advances emerged.

High Peak Royalty is a small but growing energy royalty owner that has recently completed an acquisition that will increase revenue and cash flow. It is exposed to movements in oil & gas prices. It is positively geared to re-activation of exploration and development activity in key permits. These are no-cost options on successful drilling outcomes and would drive the value and share price higher.

Copper’s price resilience over recent years is a reflection of sound market fundamentals. Demand is being driven by both traditional and new-age applications, whilst the supply-side reflects challenges around a market that’s heavily dependent upon ageing mines. I anticipate prices will recover and establish a base around $3.00/lb, which in my view is an important threshold that’s necessary to encourage new mine supply.

Venture Minerals (ASX: VMS) is hoping the lithium-focused electronic car boffins can find room to introduce tin to their conversation. With lithium dominating the battery world mind-set, some of what most pundits consider as the more traditional commodities, have been forced to share the back seat of the anticipated electric car revolution.

Whether you are a fan of the policy or not, to tinker with it now, so entrenched in family financial plans as it is, would be a disaster for too many ordinary Australians. Because ordinary Australians are the majority of users of the policy. With property prices already on a downward slide in southern capitals, with banks now tightening credit in a reactionary response to the Royal Commission, plus recent legislative changes prohibiting Australian banks from lending against foreign income (blocking 90% of potential purchases by Australian expats), any additional tinkering with property policy would be a national disaster.

ADX Energy has three potential company-transforming assets, in the appraisal and pre-development phase in Italy, Romania & Tunisia. All appear technically and economically feasible and are third party verified. ADX faces financial constraints and a key objective this year was to secure funds for drilling and in recent months has done so in respect of Romania & Italy. If imminent farm-out in Tunisia is successful, then ADX will have a three well drilling program in 2019, which should materially support its development plans, and catalyze the share price.

High Peak Royalty is a small but growing energy royalty owner that has recently completed an acquisition that will increase revenue and cash flow. It is exposed to movements in oil & gas prices. It is positively geared to re-activation of exploration and development activity in key permits. These are no-cost options on successful drilling outcomes and would drive the value and share price higher.

I remain very bullish on gold and silver short, intermediate, and long term. Recent price gyrations appear to have nothing to do with long term fundamentals pertaining to gold and silver, but are likely the result of short-term trading, especially the positioning of the US dollar as the current safe-haven of choice. Thus, the recent sell-off will in time will come to be seen as a substantial buying opportunity. I anticipate gold will recover to trade between $1250 and $1350 over the next 12 months.

According to the fifth annual study by investment bank Credit Suisse (2014), the median Australian adult was worth more than $258,000, well ahead of the second wealthiest population on this measure, the Belgians, at $US173,000. Only six per cent of Australians have wealth below $US10,000, compared with 29 per cent in the United States and 70 per cent for the world as a whole. That's good to know, when it comes time to buy that extra coffee on your credit card!

There has been a great deal of market chatter recently concerning the expected rise in production of electric vehicles and the subsequent growth in demand for commodities to manufacture them. However, there is one commodity that is as essential to the manufacture of these new vehicles.

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